Time is ripe for trucking to face old demons: OTA chairman

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TORONTO, (Mar. 23, 2005) — Not knowing how long the capacity crunch will last, carriers should take advantage of the window of opportunity to repair their balance sheets, says the Ontario Trucking Association’s Chairman Scott Smith, who is also CEO of Toronto-based LTL carrier JD Smith & Sons.

In a letter to OTA members, Smith applauds the Canadian industry for holding firm on pricing and recouping accessorial charges, as compared to the recent past when many carriers were forced to swallow labour, fuel, insurance, and safety costs for fear of others swooping in on the freight — even at a loss.

“It would now seem even truckers have their limit. And, with a capacity crunch brought about in large part by a worsening driver shortage, the pendulum has swung — for the first time since deregulation — to a more balanced economic relationship between carriers and shippers,” he states.

“However, to consider this merely a “long overdue” opportunity to improve finances would trivialize the difficult environment endured over the past 15 years,” he continued.

Smith says that the industry should take advantage of some “of the fresh air” blowing into the industry, and use it to improve relations with the public, legislators, and investors. “I believe we are at a watershed moment in our industry,” he says. “We have the opportunity to accelerate our development as a professional and responsible industry.”

Some principals recently approved by the OTA, Smith wants the industry to promote, include:

— By taking responsible positions and reasonable and informed — yet firm — approaches to policy-makers and legislators, the industry can influence the development of laws and regulations to ensure they are effective, efficient, and equally applied.

— Because truckers share their workplace with the public, they need to accept an added responsibility to ensure they operate in accordance with the highest standards of safety and environmental stewardship.

— Speeding and aggressive driving are unsafe, wasteful and publicly unacceptable on-road behaviour that will not be tolerated and that all management effort and the full force of the law should be used to eradicate them.

— Systems need to be developed and enhanced to identify the truly habitual bad operators and ensure they face added scrutiny and penalties.

— By their operating practices and business philosophies, all carriers have a role to play in helping to shape a more positive public perception of the trucking industry.

“The industry has proven resilient in surviving the past couple of decades,” Smith says. “The question we must ask is ‘can we be as resourceful and innovative in shaping the future, as we were reacting to circumstances in the past?'”

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